Organisational Culture System of shared meaning and beliefs
Organisational Culture…. System of shared meaning and beliefs held by organizational members that determines to a large degree how they act and respond to situations. It represents a common perception held by an organization’s members. “The way we do things around here”. A constraint for the manager. How Ideas?
Cultural Dimensions…. Team orientation? Stability? Innovation & Risk taking? Attention to Detail? Outcome Orientation? People Orientation? Aggressiveness?
Exercise…. Identify and analyze IQRA’s cultural environment Assign a mark out of 10 to each dimension. Identify dominant factor. Strong or Weak culture. • Factors determining strength : –Size of organisation. –How long it has been established. –Turnover among employees. –Original cultural intensity.
Learning Culture…. Stories. Narrative that exemplifies the culture. Symbols. Repetitive sequences of activities that reinforce values. Material symbols. Tangible symbols of culture. Language. Jargon, code, terms used in a culture.
Culture and Environment
Organisations. . Organisations as systems. . Input > process > output. These systems operate in and are influenced by their environment. Various factors that affect the decisions of managers? Ideas about nature of factors?
Organisational Environment. External environment: Refers to forces and institutions outside the organization that can potentially affect the organization's performance. Environment is made up of two components, 1) The specific environment. 2) The general environment.
External environment.
Specific environment consists of: Customers Suppliers Competitors Pressure Groups That is, constituents of the environment that have a direct and immediate impact on managements decisions. Examples of how these constituents may affect managerial decisions?
The general environment consists of: The broader socio political, technological, economic, financial, demographic and legal factors that have a diffuse impact on the corporation and how it is being run. Economic conditions: Interest rates, inflation, changes in disposable income, stock market fluctuations, and the stage of the general business cycle are all factors to consider. Political/Legal: They reduce managerial discretion by limiting the choices available to managers.
Socio cultural Conditions: Managers must adapt their practices to the changing expectations of the society in which they operate. As societal values, customs, and tastes change, so managers must also change. Demographic Conditions: encompass trends in the physical characteristics of a population such as gender, age, level of education, geographic location, income, family compo sition, and so forth.
Technological: The most rapid changes during the past quarter century have occurred in technology. We live in a time of continuous technological change.
Effects. .
Exercise. . How do these environments affect an organisation? Technological environment? Socio political environment? Legal environment? Economic environment? Ethical environment? Ecological environment? Pluralistic societies? How are things different?
Environmental uncertainty. When looking at uncertainty in the environment there are two dimensions that need to be examined: Degree of change Dynamic or static environment? Degree of complexity Complex or simple environment? Components in the environment? –What do we mean by components?
How does the concept of environmental uncertainty influence managers? Each of the four cells represents different combinations of degree of complexity and degree of change.
Cell 1 (an environment that is stable and simple) represents the lowest level of environmental uncertainty. Cell 4 (an environment that is dynamic and complex) is the highest. Not surprisingly, manager’s influence on organizational outcomes is greatest in cell 1 and least in cell 4.
Because uncertainty is a threat to an organization's effectiveness, managers try to minimize it. Given a choice managers would prefer to operate in environments such as those in cell 1. They very rarely have full control over that choice. In addition, most industries today are facing more dynamic change, making their environments more uncertain. .
- Slides: 19